Whether Person X must establish the price greater or lesser than the competition.

Question

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Answer 1

Question

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

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Students have asked these similar questions

You and your two roommates are starting a pet grooming service tohelp put yourselves through college. There are two other wellestablished pet services in your area. Should you set your price higheror lower than that of the competition? Justify your answer.

You are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee. The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price increase strategies that address your concerns.

Should a company always respond to a competitor’s price cut, and what options are available if it does decide to respond?

Answer 2

Question

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

Answer 6

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.

Answer 7

Chapter 14, Problem 1MA

Summary Introduction

To discuss: Whether Person X must establish the price greater or lesser than the competition.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given situation:

Person X and his roommates are planning to start a pet grooming service to assist himself through college. There are already 2 well-organized pet services in his district.

Setting-up the price greater or lesser than our competition is based on various factors, which includes the kind of services that is provided, the breadth of service, perceived value, and the experience that one gains. As Person X is a college student not with much experience in pet grooming, it may be wise to establish a price, which is lower than the competition.

As people look for deals and the college students can give value at a lesser price, the consumers must encourage the efforts that are made through college and must be ready to pay a cost little lesser than the competition however, it must be still enough to make a reasonable gain.